I was searching this same thing, i have tried to update my phone on three different computers. I found one site that said disconnect your computer from the internet just as the updating process is extracting files...for some reason it bypasses the servers. it worked on my phone.

Nice one, your tip worked! I kept getting the server message thing, and unfortunately for a few hours couldn't access this discussions forum so was glad when I was able too, as knew someone here would have a workaround!!

If Apple is not ready for their user base, they should not release the update. My upgrade crashed mid-restore, upon reboot I am missing 7 pages of applications, including several of the core apps that ship with the iPhone and the App Store itself.

And now I cannot even restore from my own local backup of my phone because Apple's remote iPhone server is unavailable?

if you're getting activation server error during iPhone 3.0 update, try the steps below - worked for me.1. download the update software first2. Click the the 'Update' button in itunes once again3. then turn off your airport / wireless connection - this prevents the iTunes from trying to connect to the Apple servers for activation4. The update process begins - wait for this to complete and then turn the wireless back onYour iPhone should be fully updated now

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